MRF TYRES

A STUDY ON THE ORGANISATIONAL STRUCTURE OF MRF TYRES LTD AND

IMAGINARY ANALYSIS OF THE FINANCIAL STATEMENTS BY USING ZOHO
SOFTWARE

Experiential learning report submitted in partial fulfillment of the requirement for the award
of the degree of

MASTEROF COMMERCE (FINANCIAL ANALYSIS)

OF
INDIAN ACADEMY
DEGREE COLLEGE-AUTONOMOUS
Reaccredited by NACC with ‘A++’ grade
Recognized by government of Karnataka & affiliated to Bangalore North university

By
NIROSHA. S
Register No: 22IAMOC010
Under the guidance of
Jaffer
()

Henner cross, Hennur Main Road, Bangalore-560043

2022-2024

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MRF TYRES

A STUDY ON THE ORGANISATIONAL STRUCTURE OF MRF TYRES LTD AND

IMAGINARY ANALYSIS OF THE FINANCIAL STATEMENTS BY USING ZOHO
SOFTWARE
DECLARATON BY THE STUDENT

I hereby declare that “ a study on the organizational structure of MRF tyres and imaginary
analysis of the financial statement by using Zoho software” is the result of the experiential
learning work carried out by me under the guidance of professor (Jaffer) is partial fulfilment
for the award of Master’s degree in commerce (financial analysis) by Indian Academy-
Autonomous (Bangalore North University).
I also declare that this project is outcome of my own efforts and that it has not been submitted
to any other university of Institute for the award of nay other degree or Diploma or
certificate.

Place: BANGALORE Name: NIROSHA.S

Date: Register no: 22IAMOC010

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MRF TYRES

A STUDY ON THE ORGANISATIONAL STRUCTURE OF MRF TYRES LTD AND

IMAGINARY ANALYSIS OF THE FINANCIAL STATEMENTS BY USING ZOHO
SOFTWARE

ACKNOWLEDGEMENT
With immense gratitude. I acknowledge my sincere thanks to all those whose guidance made
my efforts a success.

I would like to express my special thanks to Indian Academy Degree College- Autonomous
for giving me an opportunity to present this report. I express mt heartfelt thanks to the head
of department of commerce, prof. Magdalene Daniel, for the valuable support and for giving
me an opportunity to do the experiential learning.

I express my deep sense if gratitude and sincere thanks to prof. Jaffer for his valuable
suggestions which directly influenced in the development of every step of my work. I would
like to express my hearty thanks to all lectures for their great support.

Finally, I would like to express my appreciation and gratitude to my beloved family and my
friends who helped me in whatever way possible in materializing this experiential learning.

NIROSHA.S

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MRF TYRES

A STUDY ON THE ORGANISATIONAL STRUCTURE OF MRF TYRES LTD AND

IMAGINARY ANALYSIS OF THE FINANCIAL STATEMENTS BY USING ZOHO
SOFTWARE
ABSTRACT

The global tyres industry stands as a cornerstone of the automotive sector, providing essential
components for vehicles of all types. Tracing its origin from the advent of the automobile,,
the tires industry has evolved into a multi-faceted domain characterized by drivers market
players , technological advancements and ever changing consumer preferences. Presently,
the industry operates on global scale , with the key manufacturers competing for market
shares and striving for excellence in product quality and performance.

The MRF tyres industry, a stalwart in the global automotive sector has witnessed remarkable
growth and innovation since its inception. This abstract provides a comprehensive overview
of the industry’s evolution, current status , challenges, innovation, and future prospects.
Beginning with a brief historical background, it explores MRF tyres journey from its
founding to becoming a leading player in the manufacturing domain.
Presently, MRF tyres holds a significant market share globally, boasting a wide-ranging
product portfolio and a robust manufacturing infrastructure. However, the industry faces
challenges such as intensified competition, raw material price fluctuations, and regulatory
complexities.

In response MRF tyres has continually invested in research and development, leading to
notable in tires technology, manufacturing process and sustainability initiatives. Furthermore,
emerging market trends including the demand for eco-friendly tires and advancements in
autonomous vehicles, are shaping the industries trajectory. Looking ahead, the future outlook
for the MRF tyres industry appears promising, with opportunities of growth, strategic
expansion, and continues innovation on the horizon. This abstract underscores the
organizational structure of MRF tyres .

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MRF TYRES

TABLE OF CONTENTS
SL PARTICULARS PAGE
NO NO
1. CHAPTER 1 3
1.1 INTRODUCTION 3
1.2 NATURE OF TYRE INDUSTRY 4
1.3 OBJECTIVES 5
1.4 REVIEW OF LITERATURE 5
1.5 METHODOLOGY 7
1.6 LIMITATION 8
1.7 CHAPTERIZATION 8
2. CHAPTER 2 9
2.1 COMPANY PROFILE
3. CHAPTER 3
3.1 MRF TYRES HISTORY 12
3.2 PRODUCTS OF MRF 13
3.3 MANUFACTURING FACILITIES IN INDIA 13
3.4 CAPITAL STRUCTURE OF MRF 14
3.5 ASSETS OF MRF TYRES 15
3.6 LIABILITIES OF MRF TYRES 15
3.7 CSR ACTIVITIES OF MRF TYRES 18
3.8 MANUFACTURING PLANTS IN INDIA 21
3.9 COMPETITORS OF MRF LTD 21
3.10 AWARDS AND ACHIEVEMENTS OF MRF TYRES 22
3.11 PRODUCTS/SERVICES PROFILE OF MRF LTD 26
3.12 PRODUCT RRANGE 26
3.13 NON TYRE PRODUCT 26
3.14 MAJOR BRANDS OF MRF TYRES 26
3.15 ROLES AND RESPONSIBILITIES OF KEY PERSONNEL
3.15.1 CHAIRMAN AND MANAGING DIRECTOR 28
3.15.2 JOINT MANAGING DIRECTOR 29
3.15.3 WHOLE TIME DIRECTOR 29
3.15.4 DIRECTOR MARKETING 29
3.15.5 DIRECTOR ENGINEERING 29
3.15.6 DIRECTOR OF MANUFACTURE 29
3.15.7 DIRECTOR OF EXPORT AND IMPORT 30
3.16 DIRECTORS OF MRF TYRES 31
3.17 DEPARTMENT STUDY 34
3.18 DAPARTMENT 35
3.19 SWOT ANALYSIS 40
4 CHAPTER 4
ANALYSIS OF AN IMAGINARY COMPANY USING ZOHO
ANALYTICS
5 CONCLUSION

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MRF TYRES

LIST OF FIGURES AND TABLES

SL NO PARTICULARS PAGE
NO
1. CHAPTER 3
TABLE 3.1 CAPITAL STRUCTURE OF MRF TYRES 14
TABLE 3.2 STANDALONE INCOME STATEMENT OF MRF LTD 15
TABLE 3.3 COMPARISON WITH COMPETITORS 22
TABLE 3.4 DEPARTMENT OF MRF TYRES 34
2. CHAPTER 3
FIG 3.1 AWARDS AND ACHIEVEMENT OF MRF TYRES 22
FIG 3.2 ORGANISATION STRUCTURE OF MRF TYRES LTD 27
FIG 3.3 CHAIRMAN AND MANAGING DIRECTOR 31
FIG 3.4 JOINT MANAGING DIRECTOR 31
FIG 3.5 WHOLE TIME DIRECTOR 32
FIG 3.6 OTHER KEY PERSONNEL OF MRF TYRES 32
FIG 3.7 SWOT ANALYSIS OF MRF TYRES 40

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MRF TYRES

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MRF TYRES

1.1 INTRODUCTION

The tyre industry is a complex global network of companies that design, manufacture,
distribute, sell tyres to the various vehicles, Which includes cars, trucks, buses, motorcycles,
the origin of Indian tyres way back to 1926 Dunlop limited was the first company to set up
tyre company in West Bengal. Since, then , the Indian tyre industry had started growing
rapidly . by providing employment to nearly 1 million persons including dealer, retraders,
growers of natural rubber ,etc.
At present Indian tyre industry had become one of the most competitive markets in the world
with the introduction of new technology and modern facilities and availability raw material
at low price set the sector to grow further.
An essential component of India’s automobile industry is the tyre business . it is expected to
be worth USD 2.3 billion , and its market size is significant enough to suit the needs of the
continuously expanding automobile sector. The industry is typified with the presence of both
local and foreign firms .
The Indian tyre players are growing fastly and every year produces more than 9 crore tyres
overall the tyre market the maximum share is passengers cars in India. The domestic players
produces the all range of tyres demanded by the India automobile industry.
By 2026 India is reportedly projected to rank third globally in the automobile industry . in the
upcoming years the country’s thriving automobile industry is anticipated to increase demand
for tyres. the demand for tyres is driven by the rise of the automobile sector
The automobile industry is very important driver of economic growth in India. India is
expected to be the worlds third largest automative market in terms of volume by 2026 . The
automobiles produced in the country uniquely cater to the demands of low and middle
income group. The government has come with Automotive mission plan(AMP) 2016-26
which will help the automotive industry to grow and will benefit Indian economy . the
rapidly globalizing world is opening newer opportunities for the transportation industry,
especially while it make shift towards electric, electronic and hybrid cars, which are deemed
more efficient, safe and reliable mode of transportation.
The Indian automobile industry includes two wheelers, trucks, cars, buses, and three wheelers
which plays a vital role in growth of the Indian economy. The volume of goods and services
generated in this business which enables transportation and increase vehicles sales, is a solid
indicator of its economic success. The manufacture of automobiles has increased
significantly which has a catalytic impact by indirectly raising the demand for various raw
materials such as steel rubber, plastic glass , paints electronics and services, India is a
globally recognized entity today.

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MRF TYRES

Automobile segments comprises of 4 broad categories

1. Two wheeler and three wheelers
2. Passenger vehicles
3. Commercial vehicles
4. Special application vehicles.
The automobile industry exerts a profound economic impact on both national and global
scales influencing various sectors and contributing significantly to economic growth . this
impact can be described in a narrative way . the automobile industry serves as economic
growth development, playing a pivotal role in generating substantial revenue, providing
employment opportunities and fostering technological advancements .At the heart of this
impact lies the production and consumption of vehicles which serves as a key driver of
economic activity .
On a macroeconomic level, the automotive industry contributes significantly to country’s
gross domestic product(GDP) .The production and sale of vehicles, accompanied by related
services and components form a substantial portion of the overall economic output, and as a
result fluctuation in the automobile sector often has a ripple effects throughout the broader
economy.
Moreover, the automobile industry foster an extensive supply chain, creating opportunities
for numerous ancillary businesses, raw material suppliers, component manufacturers ,
logistics and transportation services, and technology providers all find a place with the
automobile ecosystem. The interconnected web of businesses further amplifies the industries
economic influence , creating a network of economic dependencies.
The economic impact is not confined to production and manufacturing alone, the automotive
industry stimulates innovation and technologies progress.
Research and development initiatives within the sector lead to advancements in safety
features , fuel efficiency and alternative propulsion systems, this technological evolution not
only enhances the competitiveness of the industry but also spills over into the other sectors ,
contributing to broader technological growth and innovation.

1.2 NATURE OF THE TYRE INDUSTRY

Tyre industry is highly raw material intensive. Raw material for approx. 63% of tyre industry
turnover and 72% of production cost. The industry is a major consumer of the domestic
rubber market. Natural rubber constitutes 80% while synthetic rubber constitutes only 20% of
the ,material content in Indian tyres, 62% of total natural synthetic rubber consumption is by
the tyre sector, balance based non tyre industries.

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MRF TYRES

1.3 OBJECTIVES
1. To analyse the organizational structure of the MRF tyres industry
2. To ascertain the various position and their roles and responsibilities of the
management.
3. To learn about the different department of the company, their specific function and
activities.
4. To get awareness about the roles and responsibilities carried out by companies key
personnel.

1.4 REVIEW OF LITERATURE

Shravan Bhagav, Cristi spulbar, Romana Birau, Kepulaje Abhaya KUMAR, Dumitra
CINCIULESCU,(2022)
After the United States, Europe and China, India is the fourth largest tire manufacturer in the
world. An increasing demand for automobiles has maintained the Indian tyre industry
strong, equalities money is also being invested by investor in the tyre sector stocks.
Nonetheless a lot of sectors are underperforming as a result of the economic slowdown and
global pandemic. This study examines the performance of the tire sector companies in the
India using ratio analysis . based on the analysis, we discovered that in 2020, the COVID 19
pandemic had an impact on the performance of numerous companies leading to an increase in
the industry debt.
Seema Ladha (2021)
The research addresses the dearth of systematic investigation into the technology theory,
craftmanship and detection methods employed in the India’s re-treated tyres focusing on the
impact of these factors on tyre performance and brand image. The study encompassed 60
retreating centres in Maharashtra employing questionnaires and telephonic interview to
gather insights from retreaders. The findings highlight the stringent quality parameters
applied in the pre- retreating process.
RUPESH YADAV (2020)
Working capital management methods in the Indian corporate sectors have been impacted by
the paradigm by the shift in the business environment the Indian tire industry is one such
industry, the Indian tyre business has expanded quickly since its founding making effective
working capital management crucial in this sector this research aim to assess the work cycle
management effectiveness of five predominant Indian tyre firm from 2009-10, 2018-19.
The investigation was conducted using pertinent WC ratios and statistical methods and tools
at the right locations.

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MRF TYRES

AJMERA(2019)
In his study analysed the liquidity of four selected tyre companies in India for the period of
2013-14, 2017-18 for tackling the issue in the study relevant ratios, relating liquidity
statistical tool and techniques were used in the appropriate places. The study revealed that the
liquidity was not found to be satisfactory in any of the 4 selected companies during the
period.
G. Ranjit Kumar (2019)
One issue with the distribution system is the company’s tardiness in providing tires to the
dealer who then sells to customers to the corporation provides tyre only when they are
adequate order, the transport truck to be fully loaded. Why can’t the surrounding businesses
band together to send the tires in a single transport vehicle, saving the customers time?
Customer who are travel long distances would profit to avoid wasting time on the phone,
customer should submit an online request for a tire to the dealer and cc to the business.
Emil Mathew Binny (2018)
In this study the author is trying to show that tyre industry is one such industry which was not
prone to much change even after liberalization the incumbent remain to be same even after
liberalization cornering a major portion of the market sales. This study is based on empirical
approach of structure conduct performance paradigm which studies an industry performance
on the basis of the two former variables.
Jayakumar(2018)
In his study analysed the growth of 13 selected tyre and tubes companies in India during this
period by using compounded annual growth rate and statistical techniques such as mean,
standard deviation and co-efficient of variance . the study founded out of the 13 selected
companies the growth rate of apollo, MRF, and Balakrishna industry.
Vidat Choudhary , Abhay Choudhary (2017)
This study states waste tyre rubber as an environment problems . with increase in automobile
production huge amount of waste tyre need to be disposed .discarded vehicles tires
constitutes one important part of solid waste which had historically has been disposed of into
landfills. In this study about physical and mechanical properties of concrete containing
recycled tyre or rubber material aggregates to assess its suitably as a construction material.
Nisha Rapheal (2013)
This study tries to evaluate the performance of Indian tyre of industry in terms of various
financial indicators , sales trend, production trend, export trend, etc. the result suggests that
the tyre industry has been passing through turbulent phases characterized by enhanced debt
burden, low utilization of assets and above all, huge liquid crunch . the key to success in the
industry is to improve labour productivity , labour flexibility , and capital efficiency.
Rajesh Kumar (2013)

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MRF TYRES

This study is trying to reveal distribution system has some problem that is company delay in
time in giving tyres to the dealer who sells the tyre to customer the company give tyre when
they have sufficient order that is transport vehicle should a full load. So they decided to tie
up surrounding company to send tyre by saving time for the customer .

1.5 MEHTODLOGY
This study is based on analyzing MRF tyres organizational structures
Collection of data: Data is extracted from secondary sources
1.6 LIMITATION
1. at present tyre industry are expected to see a market decline, which may lead to sales
decrease and slower operational rates
2. tire manufacturers are acing competition from domestics as well as from MNCs that leads
to cheap imports.
3. tyre industry also faces the problems of higher war material costs.
4. customers has low loyalty as they are easily switching to between tyres of particular
specification from different manufactures
5. electric vehicles are hard on tyres and autonomous vehicle are heavier than traditional cars.
6. when the tyres are exposed to oxygen they usually dries out and becomes stiffer which
result in cracks on its surface.

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MRF TYRES

1.7 CHAPTERIZATION

CHAPTER 1 INTRODUCTION

CHAPTER 2 COMPANY PROFILE

CHAPTER 3 ORGANISATIONAL STRUCTURE

CHAPTER 4 ANALYSIS OF AN IMAGINARY COMPANY USING ZOHO

ACCOUNTING SOFTWARE

CHAPTER 5 CONCLUSION

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MRF TYRES

CHAPTER 2

2.1 COMPANY PROFILE

Madras Rubber Factory was started by K M Mammen Mappillai as a toy ballon
manufacturing unit in 1946 at Tiruvottiyur, Madras. In 1952 the company ventured into the
manufacture of tread rubber .
MRF limited in 1960 is incorporated as a private company and ventured as manufacturers of
tyres in collaboration wit Mansfield tire and rubber company based in Ohio, United States.
The company went on public on 1 ST April 1961. It was established in Beirut. In 1964 its
current logo of the muscleman was born. And in India it was the first company to export tyre
in USA. In 1973 MRF started manufacturing Nylon for the first time. The company also
entered into technical know how collaboration with B.F Goodrich in 1978.
In 1979 Mansfield Tire and rubber sold out its share to the MRF and changed the company
name as MRF Ltd in the year. The company finalized a technical collaborations agreement
with Marangoni TRS SPA Italy for the manufacture of pre- cures tread rubber for retreating

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MRF TYRES

industry. Later MRF supplied tyres to Maruthi 800 India’s first modern small car. In 1989 the
worlds largest toy maker and launched Funskool India.
Madras Rubber Factory popularly known as MRF. It is the major tyre manufacturing
company located Chennai, Tamil Nadu and it is the India’s largest tyre manufacturing
company. It was started by young pioneer [Link] MAPILLAI as small toy balloon
manufacturing unit in a small shed at Thrivottiyar in Chennai . since over 60 olden years it
emerges as largest tyre manufacturer in India . It is also the worlds 13 TH largest tyre
manufacturing company.
It is one of the largest rubber companies both worldwide, and in Indian private sector. MRF
holds more than 20% of the market share. It is the only tyre company to start the giant
manufacturing facilities at Chennai, Kottayam, Goa, Medak, Pondicherry. They went to all
segment from commercial vehicle and passenger cars 2-3 and tractors and has a strong
presence in both radial and cross ply segments. MRF LTD enjoys of manufacturing the
largest brand of tires in India and it has the highest brand preferences for superior quality
appearance and wear ability.
In 2007 the company turnover crossed INR 50 billion to mark. MRF tyres are made to run at
speeds exceeding 150 kmph at which they are exposed to extreme conditions of speed and
traction. The molecular stability of the rubber compounds is tested against severe
gravitational stress.
MRF tyres experts and rubber technologist are present at every stage to observe analyze and
gather information at the pits and dirt track which they pass. The major products MRF are
nylon grip, MRF ZVT wanderers for cars and SUV, MRF meteor II terrain tires, MRF steel
muscles for truck and buses.
Funskool
Funskool India was established in 1987 in collaboration with Hasbro toys, US Funskool
manufactures and market toys, board games among others. It has a manufacturing facility in
Goa, India. The company has manufacturing licenses for toys and games from Disney,
warner brothers, Rummikub, Dora and Funskool also has partnership with renowned toy
brands Hasbro, Lego, tomy toys, Leap frogs, for manufacturing and marketing in India.

Motorsports
MRF Racing
MRF built its first Formula 3 car in 1997. MRF in collaboration with Maruti established
the Formula Maruti racing, a single-seater, open wheel class motorsport racing event for race
cars made in India.[5] MRF Challenge is a Formula 2000 open-wheel motorsport formula
based series organised by Madras Motor Sports Club in association with MRF. The latest
season consisted of races organised at Madras Motor Racing Track, Chennai, Bahrain
International Circuit, Losail International Circuit, Doha and Buddh International Circuit,
Noida. Freddie Hunt, son of 1976 Formula One champion James Hunt and Mathias Lauda,
son of 1975, 1977 and 1984 Formula One champion Niki Lauda both competed in the
series. MRF has sponsored Indian racing drivers including Narain Karthikeyan, Karun
Chandok, Ashwin Sundar, N. Leela krishnan and Raj Bharath.

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MRF TYRES

MRF rally team

MRF is the first and only Indian manufacturer to have won the Team Championship at the
prestigious FIA European Rally Championship, not once, but twice in 2022 and 2023.
MRF have also been a long-running sponsor of an MRF rally team participating in the Asia-
Pacific Rally Championship and Indian National Rally Championship. Associating with
Czech car manufacturer Škoda, MRF Skoda is the three time reigning champion in the Asia-
Pacific Rally Championship with Chris Atkinson winning in 2012, Gaurav Gill in 2013, Jan
Kopecký in 2014,[13] Pontus Tidemand in 2015 and Gaurav Gill again in 2016 and 2017.
MRF also participates in Raid De Himalaya, the world's highest rally.
MRF entered the European Rally Championship in 2020, with WRC Hyundai driver Craig
Breen and Emil Lindholm driving for the team.
MRF remained in ERC for 2021 and also joined several other rally championships. Craig
Breen, along with Italian Simone Campedelli are set to participate in European Rally
Championship. Campedelli, along with eleven-time Italian rally champion Paolo
Andreucci and the 2017 ERC Ladies champion Tamara Molinaro will use the tyres while
competing in the Italy Gravel rally championship. Emil Lindholm left ERC and instead will
focus entirely on testing the tyres on the gravel roads of Finland. After the 2021 Rally di
Roma Capitale, Breen was replaced by other Hyundai drivers, Jari Huttunen and Dani Sordo,
as well as Nil Solans later on.
MRF entered Norbert Herczig, Simone Campedelli and the 2021 runner-up Efren Llarena for
the 2022 campaign, with Llarena taking his first win during 2022 Rallye Azores.
MRF Motocross
MRF promotes a national motocross championship, a form of all-terrain two wheeler racing
held on enclosed off-road circuits annually across several cities.

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MRF TYRES

CHAPTER 3

ORGANISATIONAL STRUCTURE OF MRF TYRES

3.1 MRF COMPANY INTRODUCTION
Malabar Rubber Factory is commonly known as MRF of MRF tyres it is an Multinational
tyre manufacturing company and the largest manufacture of India. It is headquartered in
Chennai, Tamil Nadu, India. MRF limited’s Corporate identification number (CIN) is
l25111TN1960PLC004306.
Registered office of MRF is: 114 Greams road, Chennai-600006. Telephone number:91-044-
28292777. Fax Number-91-044-28295087.
History of the company
In 1946,
K.M. Mammen Mappillai started MRF’s journey as a toy balloon manufacturing unit in a
shed in Tiruvottiyur in Madras
In 1949,
the company the company was making latex cast toys. Gloves and contraceptive and
established its first office at 334, Thanbu Chetty street, Madras (now Chennai), Tamil Nadu,
India. In 1952, MRF’s venture into the manufacture of tread rubber and put them on the road
and into the big leagues.
In 1956,
Within 4 years MRF was the market leader of tread rubber in India a 50% shares
In 1961,
They proved to be a fruitful year because they became a public company, and established as
a technical collaboration with the Mansfield tyre and rubber company based in USA and then
the chief minister of Tamil Nadu Mr. k. Kamraj released the first tyre from MRF’s new pilot
plant at Tiruvottiyur.
In 1963,
Pandit Nehru laid the foundation stone for the Rubber Research center at Tiruvottiyur on
June 12 1963, commemorating the inauguration of the Tiruvottiyur factory.
In 1964,
MRF set up an overseas office at Beirut , one of India’s first efforts at exporting tyres and to
build an identity. The MRF muscleman was born.

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MRF TYRES

In 1967,
MRF became the first Indian company to export tyres the very birthplace of tyre technology,
the United States.
In 1970,
MRF opened its second plan at Kottayam.
In 1973
MRF started manufacturing Nylon tyres. In 1978, the firm B. F. Goodrich joined into a
technical know-how collaborations. In 1979, the Mansfield tyre & Rubber Co, sold all of its
shares, and the business rebranded as MRF Ltd, the firm and Marangoni TRS SPA, Italy
have finalized a technological collaboration agreement for the production of pre cured tread
rubber for the retreading sector, India’s first contemporary small automobile, the Maruti 800
was equipped with tires from MRF tyres. Funskool India was established in 1989 by a
partnership between the company and Hasbro international, the largest toy manufacturer
globally. Additionally they signed agreements with Pirelli, an Italian tyre maker to
manufacture conveyor and elevator belts, and with Vapocure, an Australian company to
manufacture polyurethane paint formulas from 2004 to 2005 the product line of the company
expanded with Go-kart & rally tyres.
3.2 PRODUCTS OF MRF
MRF tyres manufactures a wide range of rubber products, MRF paint and toys, MRF sports
goods etc., few among them are:

Tyres
Sports goods
Funskool
Paints & coats
Pre treads
International business
Business opportunities
MRF Sri Lanka
3.3 MANUFACTURING FACILITIES IN INDIA
1. Kottayam plant in Kerala
2. Puducherry plant
3. Goa plant
4. Trichy Radial plant in Perambalur District , Tamil Nadu
5. Trichy bias plant in Tamil Nadu
6. Arakonam plant in Tamil Nadu
7. Tiruvottiyur plant in Chennai, Tamil Nadu

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MRF TYRES

8. Medak plant in Telangana

9. Ankenpally plant in Telangana
10. Dahej plant in Gujrat

3.4 CAPITAL STRUCTURE OF MRF TYRES

Capital structure is the mix of debt and equity used to finance a business, and is detailed in
the companies balance sheet. It includes shareholders equity, debt and preferred stock. Debt
is borrowed money that must be repaid, often with interest, while equity represents
ownerships stakes in the company.

TABLE 3.1 CAPITAL STRUCTURE OF MRF TYRES

instrument Authorized Issued Paidup period
capital capital
Rs in (cr) Rs in(cr) From

Equity shares 9 4.24 4,241,143 2022 2023 10 4.24

Equity shares 9 4.24 4,241,143 2021 2022 10 4.24
Equity shares 9 4.24 4,241,143 2020 2021 10 4.24
Equity shares 9 4.24 4,241,143 2019 2020 10 4.24
Equity shares 9 4.24 4,241,143 2018 2019 10 4.24
Equity shares 9 4.24 4,241,143 2017 2018 10 4.24
Equity shares 9 4.24 4,241,143 2016 2017 10 4.24
Equity shares 9 4.24 4,241,143 2015 2016 10 4.24
Equity shares 9 4.24 4,241,143 2014 2015 10 4.24
Equity shares 9 4.24 4,241,143 2013 2014 10 4.24
Equity shares 9 4.24 4,241,143 2012 2013 10 4.24
Equity shares 9 4.24 4,241,143 2011 2012 10 4.24
Equity shares 9 4.24 4,241,143 2010 2011 10 4.24
Equity shares 9 4.24 4,241,143 2009 2010 10 4.24
Equity shares 9 4.24 4,241,214 2008 2009 10 4.24
Equity shares 9 4.24 4,241,043 2007 2008 10 4.24
Equity shares 9 4.24 4,241,143 2006 2007 10 4.24
Equity shares 9 4.24 4,241,143 2005 2006 10 4.24
Equity shares 9 4.24 4,241,143 2004 2005 10 4.24
Equity shares 9 4.24 4,241,143 2003 2004 10 4.24
Equity shares 9 4.24 4,241,143 2002 2003 10 4.24
Equity shares 9 4.24 4,241,143 2001 2002 10 4.24
Equity shares 9 4.24 4,241,143 2000 2001 10 4.24
Equity shares 9 4.24 4,241,143 1999 2000 10 4.24
Equity shares 9 4.24 4,241,143 1991 1999 10 4.24
Equity shares 9 3.86 3,856,143 1990 1991 10 3.86
Equity shares 9 3.86 3,856,118 1989 1990 10 3.86
Equity shares 9 3.86 3,856,118 1982 1990 10 3.86
Equity shares 9 3.86 3,656,118 1975 1980 10 3.66

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MRF TYRES

Equity shares 3 2.44 2,437,429 1970 1971 10 2.44

Equity shares 3 1.88 1,875,000 1963 1968 10 1.88
Equity shares 3 1.25 1,250,000 1961 1962 10 1.25

3.5 TOTAL ASSETS OF THE MRF TYRES

MRF LTD’s total asset in March 2023 were ₹24,024 cr, which is a 5.9% increase from the
previous year. The company’s total asset and liability for 2023 were ₹244 billion, which is a
6% increase from 2022.
Here are some of MRF ltd’s asset in 2023
 Current assets:₹92 billion
 Fixed asset:₹151 billion
 Current liabilities :₹75 billion
 Long term debt:₹8 billion
MRF Ltd’s net worth in 2023 was around ₹145 billion.

3.6 LIABILITIES OF MRF TYRES

MRF Ltd’s current liabilities for 2023 are Rs 75 billion, which is 7.7 % increase from 2022.
Long term debt is Rs 8 billion, which is a 0.8% increase from 2022.

TABLE 3.2 STANDALONE INCOME STATEMENT OF MRF LTD

Balance sheet of MRF(in [Link]) Mar 23 Mar22 Mar 21 Mar20

12 months 12 months 12 months 12 months

QUITIES AND LIABILITIES

SHAREHOLDER’S FUND

Equity share capital 4.24 4.24 4.24 4.24

TOTAL SHARE CAPITAL 4.24 4.24 4.24 4.24

Reserves and surplus 14,504.63 13,773.03 13,174.62 12,000.11

TOTAL RESERVES AND SURPLUS 14,504.63 13,773.03 13,174.62 12,OOO.11

TOTAL SHAREHOLDER’S FUND 14,508.87 13777.27 13,178.86 12004.35

NON CURRENT LIABILITIES

14
MRF TYRES

Long term borrowings 823.58 817.21 811.76 779.03

Deferred tax liabilities 381.67 393.50 378.50 427.83

Other long term liabilities 743.41 640.24 496.85 578.12

Long term provisions 215.02 218.67 211.25 189.16

TOTAL NON CURRENT LIABILITES 2,163.68 2,069.42 1,898.36 1,974.14

CURRENT LIABILITES

Short borrowing 1,152.50 1,186.51 40.82 241.99

Trade payables 2,757.45 2774.32 4,244.86 2,340.41

Other current liabilities 3,207.31 2705.32 2,696.95 2440.41

Short term provisions 232.94 180.04 199.73 152.08

TOTAL CURENT LIABILITIES 7,351.20 6,846.71 7,182.36 5,175.62

TOTAL CAPITAL AND LAIBILITIES 24,023.75 22,693.40 22,259.58 19,154.11

ASSETS

NON CURRENTS ASSETS

Tangibles assets 10,024 9,445.06 9,366.83 8,820.72

Intangible assets 25.94 21.21 24.31 28.46

Capital-work-in-progress 3,045.22 1,225.81 1,001.34 1,734.56

Other assets 0.00 0.00 0.00 0.00

FIXED ASSETS

Non current investments 1130.92 1,155.53 1,150.34 26.53

Deferred tax assets 0.00 0.00 0.00 0.00

Long term loans and assets 1.19 0.82 2.67 12.22

Other non current assets 835.22 900.76 562.76 573.81

TOTAL NON CURRENT ASSETS

FIXED ASSET

15
MRF TYRES

Non current investment 1130.92 1155.53 1150.34 26.53

Deferred tax asset(net) 0.00 0.00 0.00 0.00

Long term loan and advances 1.19 0.82 2.67 12.22

Other non current assets 835.22 900.76 562.58 573.81

TOTAL NON CURRENT ASSETS 15062.59 12749.19 12107.76 11196.30

CURRENT ASSETS

Current investments 1974.84 2509.69 4725.83 1513.65

Inventories 4042.68 4061.72 2880.33 2852.69

Trade inventories 2442.36 2283.26 2220.50 2257.03

Cash and equivalent 156.29 114.85 105.34 1106.85

Short loan and advances 2.95 3.18 6.77 2.89

Other current assets 342.04 971.51 213.05 224.70

TOTAL CURRENT ASSETS 8,961.16 9944.21 10151.82 7957.81

CONTINGENT LIABILITIES,
COMMITMENTS
3303.35 3897.42 0.00 0.00
Contingent liabilities

CIF VALUE OF IMPORTS

Raw materials 3836.70 4048.35 4048.35 3016.15

Stores, spares and loose tools 0.00 0.00 0.00 0.00

Trade/other goods 0.00 0.00 0.00 0.00

Capital goods 1136.83 413.38 263.16 1160.67

EXPENDITURE IN FOREIGN
EXCHANGE

Expenditure in foreign exchange 122.50 141.81 61.57 111.96

REMITTANCE IN FOREIGN
EXCHANGE
Dividend remittance in foreign currency

16
MRF TYRES

EARNINGS IN FOREIGN EXCHANGE

FOB value of goods 1646.96 1521.29 1113.26 1384.45

Other earnings 116.37 42.75 16.03 15.51

BONUS DETAILS
1.78 1.78 1.78 1.78
Bonus equity share capital

NON CURRENT INVESTMENT

Non current investment quoted market

value 1109.20 1133.81 1128.62 4.81

Non-current investments unquoted book

value 21.72 21.72 21.72 21.72

CURRENT INVESTMENT

Current investment quoted market _ _ _ _

value
1974.84 2509.69 4725.83 1513.65
Current investment unquoted book value

3.7 CSR ACTIVITIES OF MRF LTD

PROJECT CATEGORY

Provision of sewing machines to women of Livelihood enhancement project

economically weaker classes .

Part financing for purchases of scientific Promotion of education & Research aimed
equipment by IIT Madras at promoting sustainable development goals

Vision screening proposal Promotion of healthcare

Infrastructure development in Promotion of healthcare and sanitation

Naranamangalam, Preambulur

Madras Christian college, MCC Innovation Promotion of education

park- Phase 1.

Provision of medical equipment’s GH- Promotion of healthcare

17
MRF TYRES

Thiruvottiyur.

Provision sanitary Napkin vending machine Promotion of education & healthcare

and Incinerator

Providing Ambulance service in primary Promotion of healthcare

health centre, Bailli, Goa

Providing 500 kg per day wet waste Ensuring environmental sustainability and
compositing system ecological balance

Construction of grama panchayat building in Rural development project

Suraram village.

Rest room provision at the combined labour Promotion of sanitation projects

department, Trichy

Construction of basketball court in police Promotion of education

Head quarter, Bharuch district

Mini bus for school going girl students in Promotion of education

tribal area Bharuch district.

MRF pace foundation. Budget for financial Training for sports

year 2021-2022

MRF institute of driver development Skill development

(MIDD) budget for financial year 2021-
2022
Livelihood enhancement
Livelihood enhancement project in northern
states of India and other areas by
development of natural rubber plantations
and other allied activities
Disaster management including relief,
COVID (2nd wave) projects- contribution to rehabilitation and reconstructive activities.
state governments/plants level projects as
approved by chairman and managing
director Training for sports/skill development

Transfer of assets of pace foundation

/MIDD (excluding GST) Promotion of healthcare

Construction of ophthalmology operation

theatre at Thiruvottiyur govt. hospital Promotion of education

Providing smart classroom(3 nos) to Tagore

educational institute of Kothambi, near

18
MRF TYRES

Usagao, Goa Promotion of sanitation

Providing garbage collection vans to

Ambattur, Chennai. Promotion of healthcare

Construction of post mortem room at

Siddapur primary health center, Medak Promotion of healthcare

Providing garbage collection vans to

Ambattur Chennai.
Rural development/disaster management

Supply of hearse van to police department

Puducherry Rural development

Construction of ration store building in

Karai village, Perambalur Providing safe drinking water

Construction of RO water plant in Karai

village Perambalur. Promotion of education

Infrastructure development in govt primary

school Chettikulam Environmental sustainability

Infrastructure development in district forest

office Making available safe drinking /rural
development
Infrastructure development in
Naranamangalm and Maruthdi(RO) water
plant Vocational skill development

Escalation in budget for MRF institute of

driver development for financial 2022-2023

3.8 MRF LTD HAS NINE MANUFATURING PLANTS IN INDIA THESE PLANT
ARE LOCATED IN:

19
MRF TYRES

 Kottayam, Kerala
 Puducherry
 Goa
 Trichy, Tamil Nadu
 Arakonam, Tamil Nadu
 Tiruvottiyur, Tamil Nadu
 Medak, Telangana
 Ankenpally, Telangana
 Dahej, Gujarat

3.9 THE COMPETITORS OF MRF LTD INCLUDES:

 Apollo tyres ltd
 Balkrishna industries ltd
 Ceat ltd
 Goodyear India ltd
 Govind rubber ltd
 Innovative tyres and tubes ltd
 JK tyres and industries
 Krypton industries ltd
 Modi rubber ltd
 Tirupati tyres ltd
 TVS Srichakra ltd

TABLE 3.3 COMPARISON WITH COMPETITORS

20
MRF TYRES

NAME LAST MARKET SALES NET TOTAL

PRICE CAP TURNOVER PROFIT ASSET
MRF 137,012.75 58,109.07 22578.23 816.23 16458.95
BALAKRISHNA LTD 2260.35 43,696.45 9810.52 1078.71 10843.07
APOLLO TYRES 458.10 29093.97 17301.02 578.74 13975.37
JY TYRES AND IND 429.70 11203.29 9617.92 183.77 5436.53
CEAT 2540.75 10277.36 11263.26 206.27 5411.33
TVS SRICHAKRA 4095.95 3136.29 2865.39 70.12 1677.31
GOODYEAR 1273.70 2937.98 2927.51 122.86 605.81
PIX TRANSMIS 1292.05 1760.44 450.14 55.39 457.38
GRP 5959.05 794.54 450.81 10.23 232.20
SOMI CONVEYOR 145.95 171.92 93.73 3.47 84.11
INNOVATIVE TYRE 6.60 11.87 1.92 -52.94 -6.22

3.10 AWARDS AND ACHIEVEMENTS OF MRF LTD

Fig 3.1 AWARDS AND ACIEVEMENTS OF MRF TYRES

In 2006, MRF voted the “most

trusted’ tyre company in India by
TNs 2006 global CSR study.

21
MRF TYRES

CAPEXIL, MRF won the award for exports

in 2010

In 2012, J D POWER ASIA

PACIFIC : MRF won the award
for customer satisfaction not once

22
MRF TYRES

but 12 time till date

In 2013, FORD WORLD EXCELLENCE AWARDS: MRF won the silver award and is the
only Indian company to win this excellence award

n 2018, CAR INDIA AWARDS:

Perfinza by MRF won the
product of the year award

23
MRF TYRES

In 2023,MRD BRAND
FINANCE AWARD: most
valuable Indian tyre brand second
strongest tyre brand in the world
ranked in top 10 in the world for
sustainability.

And MRF brand of car /SUV tyres ranked highest in customer satisfaction. The 13th
win for MRF. MRF tractor tyre rated no.1 on J.D Power customer satisfaction index

3.11 PRODUCT/SERVICE PROFILE OF MRF LTD

Tyres manufacturers various types for passenger cars two wheelers, trucks, tractors, light
commercial vehicles, off-the road tyres and aero planes, MRF ZVTS and MRF wanderers for
cars and SUCs MRF steel muscle for trucks and buses.
MRF ZLX is the largest one which is well known for its comfort in passenger segment
Conveyors belting – manufactures its in house brand of muscle flex conveyor belts.
Pre-treads -MRF has the most advanced pre-curved retreading system in India MRF forayed
into retreading in 1970 and manufactures pre treads for tyres.
Paints- manufactures polyurethane paint formulations and costs used in automotive
decorative and industrial applications.
3.12 PRODUCT RANGE
Automotive tyres are the main products of the company
 Truck tyre tube type and tubeless type
 Light truck tyres
 Special tyre and defense
 Tyre for industrial application
 Agricultural tractor and tiller tyres
 Off the road tyres solid tyres and earth mover tyres

24
MRF TYRES

 Passenger tyres bias ply and radial

3.13 NON TYRE PRODUCTS

 Automotive tubes
 Toys
 Flaps
 Conventional treads rubbers
 Pre-cured tread rubber
 Vulcanizing solution
 Tyre repair materials

3.14 MAJOR BRANDS OF MRF TYRES

Superlug - country’s largest selling truck tyres
Shakthi - country’s largest selling tractor tyre
Zigma - country’s largest selling radial car tyres
Nylogrip - country’s largest selling two wheelers tyres
Legend - country’s largest selling conventional car tyre.
FIG 3.2 ORGANISATIONAL STRUCTURE OF MRF LTD
Chairman &
managing director

Joint managing
director

Director
marketing
Whole
time
director

Director
engineering

25
MRF TYRES

Director Director
material & account
export
division

Director R
&D

Director
manufacturin
g

manufacturing units

Thiruvathiyur Goa Arakonam Medak

Kottavum Pondicherry Gummidippandi Perambalur

3.15 ROLES AND RESPONSIBILTIES OF KEY PERSONNEL

1. CHAIRMAN AND MANGAING DIRECTOR
2. JOINT MANAGING DIRECTOR
3. WHOLE TIME DIRECTOR
4. DIRECTOR MATERIAL AND EXPORT DIVISION
5. DIRECTOR MARKETING
6. DIRECTOR ENGINEERING
7. DIRECTOR ACCOUNTS
8. DIRECTOR R & D
9. DIRECTOR MANUFACTURING

3.15.1 CHAIRMAN AND MANAGING DIRECTOR

The chairman is responsible for leading the board and focusing it on strategic matters,
overseeing the group’s business and setting high governance standards, he plays a pivotal role
in fostering the effectiveness of the board and individual directors, both inside and outside the
board room.
Key characteristics of chairperson are
1. Acceptable among the board members
2. To be above reproach

26
MRF TYRES

3. Demonstrate fairness and uphold organizational values

4. Ability to direct and manage the chief functionary on behalf of the board
5. Should not have conflict of interest
6. Good leadership skills, communication and interpersonal skill
7. Impartiality, fairness and the ability to respect confidentially
8. Understanding of the roles/responsibilities of board
In order to manage his/her role smoothly, there are certain powers vested with the
chairperson. The chairperson has the power to allow/disallow a member to speak in order to
maintain discipline. At the same time it is expected that the chairperson acts in an
independent and neutral manner in order to provide opportunity to all board members to
voice their opinions, sometimes if there is a division in opinions, the chairperson may ask for
voting on order to determine the majority opinion. In the eventually of a tie, the chairperson
has a second vote which is called the
“Casting Vote”. The power to execute “casting vote “is reserved only in case of a tie .
Therefore, the chairperson is seen as a leader among the equal with certain special power
embedded in the role.

3.15.2 JOINT MANAGING DIRECTOR

A managing director is responsible for the performance of a company and typically has a top
leadership position. Their role is to direct and control the company’s operations and to give
strategic guidance and direction to the board. There are some responsibilities of managing
director
1. Inspire and motives employees to work efficiently
2. Shares updates about progress and meet with clients and shareholders
3. Create and manage plans that best fit the organization needs including considering
market condition and competition and determining long term objectives.
4. Make strategic choices that align with the company’s shareholder and boards goals,
along with the company’s overall mission
5. Identify the matters and develop strategic to resolve issues
6. Manage changes that may occur at the certain time
7. Anticipate issues and development that might affect the business and overcome them
by planning ahead and hiring qualified people to handle matters
3.15.3WHOLE TIME DIRECTOR
A whole time director is a full time executive director of the company who is responsible for
the company’s overall management team and have significant decision making authority

27
MRF TYRES

Responsibilities are managing the day-to-day operations of the company

Overseeing the operational aspects of the company including production, marketing, finance,
and administration
Devoting attention and abilities to the business of the company
Carrying the direction given by the board of directors of the company.

3.15.4 DIRECTOR MARKETING

A marketing director is responsible for developing and implementing a company’s marketing
strategy and overseeing the marketing activities of marketing teams. They work to increase a
company’s market share revenue some of the responsibilities are
Developing the marketing strategy
Providing market research
Adjusting the market plan
Managing the marketing campaigns
Developing promotions
Maintaining knowledge.

3.15.5 DIRECTOR ENGINEERING

They are technically credible and know the details of what engineers work on their time is
spent safeguarding their teams health hiring a world class team
Prioritizing of hiring efforts to focus on areas of most need and quickly recruit top
engineering talent
Motivate ad communicate across multiple level id their development leaders and product
management.
3.15.6 DIRECTOR MANUFACTURING
A director of manufacturing is responsible for managing all aspects of a production facility
 Hiring new staff
 Scheduling production
 Working with designers and quality assurance to ensure products meet specification
 Helping to meet all operations standards
 Creating financial reports that reflect the company’s financial position and
performance
 Coordinating activities among departments such as finance account, marketing, and
human resource.

28
MRF TYRES

3.15.7 DIRECTORS OF EXPORT AND IMPORT

 Appointment of the clients relating to insurance coverages, duties as well as tax
obligations
 Monitoring of the deliveries to ensure the conformity of guidelines
 Look for possibilities to decrease taxes
 Upkeeping of customer connections as well as participation in the company’s sales
tasks
 Evaluation of new advertising and also sales opportunities along with the discussion
of those estimates to the respective administration
 Making sure the efficiency of import and export

3.16 DIRECTORS OF MRF TYRES

FIG 3.3 K.M. Mammen – chairman & managing director

29
MRF TYRES

FIG 3.4 Arun Mammen - Joint managing director

Fig 3.5 K.M. Philip - Whole time director

30
MRF TYRES

FIG 3.6 OTHER KEY PERSONNEL OF MRF TYRES

OTHER DIRECTORS OF MRF TYRES

 K.C. Mammen - Director

 C.G. Rangabashyam - Director
 K.D. Prakash - Director
 Ashok Jacob - Director
 S. Nandagopal - Director
 V. Kumar - Director
 Ranjith I. Jesudasen - Director
 D. M. Choksi – secretary

31
 MRF TYRES

3.17 DEPARMENTAL STUDY

General manager

Plant Plant Plant Plant

Plant Plant
Plant Plant quality industrial senior
HR engineerin
production accounts technical engineering security
manag assurance g manager
manager manager manager manager officer
er manager

32
 MRF TYRES

Assistant Techn Quality Assista Securi Electrical

Genera
Manag manager ical assuran nt ty maintenan
l
er account office ce manag officer ce civil
supervi
plant I sor r officer er engineerin
plant II time g
office mechanic
maintence

Staff
forem supervi
an operator sor
Technical Quality supervisors
assurance guards
supervisor

Staff
supervisor
workers workers operators workers
workers
Workers
TABLE 3.4 DEPARTMENTS OF MRF TYRES

3.18 DEPARTMETNS
MRF LTD gives an insight about the functioning of the different departments. Each
department Is headed by the general manager who posses expertise, knowledge in the area
under his supervision . there always exists an ergonomic atmosphere which is often made
possible by the close interaction between all members in each department. The top
management moulds the strategic and policies that make sure that the middle management
implements them. Weekly interdepartmental meeting aims at bringing coordination between
the different departments open forums are held once in a week in all plants where the
employees can raise their concerns, suggestion etc…
The various departments headed at MRF LTD can be enlisted below:
 Production department
 Production planning department
 Quality assurance department
 Technical engineering department
 Plant purchase department
 Raw material store department
 Shipping (Dispatch) department
 Accounts department

33
MRF TYRES

 Industrial engineering department

 Safety department
 Security department
 Human resource department

1. PRODUCTION DEPARTMENT
Production is the primary function of the company and hence all other functions are
support functions.
The following are the main functions of the production department
 Planning for production process : every monthly plan is given to the plant by
central planning. Based on the monthly plan-planning department will prepare
a stimulation plan by dividing the month into 3 segments of 10 days each.
 Material indent and receipt: the daily requirement of raw material is calculated
at each plant after considering the available inventory and the schedule
production for the next day raw material indented is made to raw material
store.
 Processing: processing is carried out per the technical specification.
 Production identification and traceability
 Inspection.

2. Production planning department

Production planning for the coming month will be issued from the central planning at
corporate office based on this, plant planning in-charge will issued from the central
planning , plant production and to shipping. Based on the monthly plan and the
inventory norms the monthly requirement of raw material and consumables will be
prepared by plant planning and is sent to central planning. Corporate purchase and to
raw material stores. Monthly requirement of raw material is calculated from software
and it is validated every six months.

3. Quality assurance department

Quality is considered as the most effective tool to improve productivity, to achieve
cost effectiveness to improve profitability and market share and to remain competitive
in the global market. In the business environment of today, quality impacts not only
the products the products and services but also many other relevant entities such as
process, systems, people and organization.

A low level quality can be the weakness either in the design of the product, or in its
manufacture. It is therefore appropriate to distinguish between quality of design and

34
MRF TYRES

quality of manufacture. Two products which have the same use but which are
designed in different ways can be different quality of design. Quality of design is
evident in the specification to which the product will be manufactured. A product may
confirm in varying degrees to the specification. This varying degree of confirmation
to the specification will lead to varying degree of quality of manufacture.

FUNCTIONS OF QUALITY ASSURANCE DEPARTMENT

Quality assurance department’s primary aim is customer satisfaction. Hence its prime
duty is to ensure that all customer complaint should be taken seriously and it is
communicated to all concerned. Problems solving tools are employed to ensure that
the problems is solved and error proofing methods are adopted to ensure that such
problems don’t occur again.

The main function of quality assurance department is process audit and final product
inspection. Thus will include monitoring the inspection status of incoming materials,
in process materials, process parameters and finished product inspection. Ensuring
identification and traceability of all materials is also the function

TECHNICAL DEPARTMENT

Technical department at the corporate level carries out R&D activities and the result
of those activities are transferred to the plants. Some of the activities carried out at
corporate technical are new moulds selection and evaluation of new and alternative
sources, selection and evaluation of alternative materials finished product testing and
analysis heat engineering and assisting plants in problem solving.
ACTIVITES

New product development

New compound development
Designing and inspection of new moulds
Selection and evaluation of new alternative source
Selection and evaluation of alternative
Finishes product listing and analyzing
Arresting plants in problem solving

PLANT PURCHASE DEPARTMENT

35
MRF TYRES

The items purchased by the plant can be categorized as follows:

a) Items which come under the head capital expenditure
b) Items which come under engineering spares(non capital expenditure)
c) Stationary and miscellaneous items
d) Services
Procedure followed for purchase
Any person who needs a material can make a purchase requisition but it has to be
authorized by the department head. This has to be routed through engineering store.
In case of items involving capital expenditure it should have capital authorization number. In
case of engineering spares of non capital nature, this is not requires. Based on the indent,
necessary quotations are invited and purchase orders are released . the copy of purchase order
to the supplier, intender, accounts, corporate office, PEM and file a copy for plant purchase.
RAW MATERIAL SORE DEPARTMENT

Raw material stores will receive a copy of the raw material requirement for the month
prepared and sent by plant planning. This is also sent to central planning and central purchase
by plant planning. Based on the requirement, central purchase arranges for procurement of
materials and issues a delivery schedule to the plant. Delivery schedule is the schedule by
which the supplier will release the specifies dates to the plant.
Raw material consumables, fuel etc are received at the factory in line with the delivery
schedule and purchase orders. The documents are verified to ensure that the materials are
from approves sources and the correct quantity as is delivered

SHIPPING (DESPATCH) DEPARTMENT

Finished goods will be received from inspection packing area size wise, batch wise or lot
wise on the basis of production transfer note. Physical verification of goods is done at the
time of receipt and receipt tags are put. Proper storage and identification of finished goods is
the responsibility of shipping department. Finished goods will be stored size wise on pallets
with transfer slips showing the size, quantity. date of receipt etc. tractor tyres and such other
will be stacked on floor. Stacking on floor. Stacking norms for finished goods. Where ever
specified will be followed.

ACCOUNTS DEPARTMENT
The functions of the accounts department at the plant level have been divided into
Financial account
Cost account
Wages and salaries

36
MRF TYRES

Sales tax
INTERNAL SOURCE
Share capital
Surplus and reserve
EXTERNAL SOURCE
Banks
APPLICATION OF FUNDS
Fixes assets
Investments
Current asset
Loans and advance

ENGINEERING DEPARTMENT
engineering department functions are divided into mechanical, electrical instrumentation,
civil and environmental engineering.
The main functions are new machinery lay out preparation, erection

SAFETY DEPARTMENT
Responsibility of this department is to ensure the working ambience to all the personnel
within the factory and the premises. The safety officer through the mechanism of audits and
subsequent reporting feedback, builds in the safety consciousness and the safety culture
within the personnel.
MRD LTF has a well defined safety and healthy policy which as follows.
“it is the policy of our company that the SAFETY AND HEALTH of our employees shall be
our FIRST priority”.
“ we all observe this policy not only in letter but also in spirit and offer “ACCIDENT FREE
SAFE PRODUCTION” FOR THE BENEFIT OF ONE AND ALL.

SECURITY DEPARTMENT
Industrial safety in the public and private sector can be defined as protection of men,
materials, machines, buildings, classified information, and the company operation and to

37
MRF TYRES

provide protective services against fire, theft, damage to the company assets and the
installation.
Amin functions are
Control over accessibility
Check against theft
Control over the movement of personnel and material at the gate
Checking war material empty vehicles, carrying finished goods, vehicle carrying scrape items
etc.
Check and control over the entry of contract works.

HUMAN RESOURCE DEPARTMENT

The HR department is known as the heart of an organization. It performs a number of
activities concerned with the employees of their organizations. It interacts with other
departments to ensure effectiveness of the company.

3.19 SWOT ANALYSIS

FIG 3.7 SWOT ANALYSIS OF MRF TYRES

STRENGTH
WEAKNESS

Swot
analysis

OPPORTUNITIES TREADS

38
MRF TYRES

SWOT ANALYSIS OF MRF COMPANY

Strengths
 Brand recognition to top of mind brand recall, MRF beats rest of the competition hands down.
MRF has for long concentrated on aggressive brand promotion.
 Strong exports :
Exports accounts for around 12% of the gross sales in MRF. The company exports
to over 65 countries worldwide. It is the largest tyre exporter in South Africa.

 Aggressive marketing policy:

MRF has aggressively pursued a pull marketing strategy to sell its tyres. In a pull
strategy the manufacturer uses advertising promotion and other forms of
communication to induce the consumers to demand the product. Its leadership
position coupled with its strong brand recall and high quality. MRF commands the
price maker status.
 Strong financial support:
The financial position of MRF is stable with an excellent margin of profit which is
increasingly by every year.

 Efficient distribution network

MRF has over 3000 strong dealer network with 180 offices. The company boasts of the
largest of tyres- from heavy truck to two wheeler tyres.

 Locally availably raw materials:

Rubber being the single largest raw material is locally available in South India. Kerala is
the largest producer of rubber in India. It produces 90% of the rubber in India, MRF has set
up a manufacturing unit in Kottayam which is the major source of rubber in India.
 Quality products:
MRF offers quality products to the consumers. MRF has ISO 9001 certificate for it quality
in production.

WEAKNESS
 Highly motivated union problem:
As a result of disagreement between these trade unions, frequent lockouts are common in
the manufacturing units.
 High rate of absenteeism:
There has been an increasing rate of absenteeism among the works. It has reduced thr
productivity.

 Marketing department is only at corporate office:

39
MRF TYRES

MRF has 3 manufacturing units all over India. But it has only one marketing department in
the corporate office in Chennai.
 Lack of individual initiative
 Lack of commitment
Many workers are working on daily wage basis who are not committed to the organization
as the permanent employees.
 Lack of transportation facility of employees:

Opportunities

 Availability of latest technology :

R&D efforts being taken to develop products with stringent performance requirement such
as higher mileage, rolling resistance, traction, higher speed capabilities as demanded by the
new multinational automotive manufacturers.
 Joint ventures and tie up with foreign automobile companies:
Maruthi Suzuki, Mahindra and Mahindra , Tata Motors, general motors as new automobile
companies are coming in India, MRF has the opportunity to have tie-up with these
companies.
 Improvement in market share both in India and outside:
The sale of conveyor belting has shown excellent growth with sales to most of the major
markets in Australia, Europe and South America.
 Modernization of tubeless tyres:
Tubeless tyres are pneumatic tyres that do not require a separate inner tube. Now a day,
many cars are sold with tubeless tyres as standard fitment.
 Increased cost of raw materials:
The increasing cost if raw materials, mainly natural rubber, which constitutes approximately
70% of the input costs, put pressure on the finances of most tyres companies.

 Competitions:
The Indian automotive industry is expanding to become one of the fastest growing markets
in the world. Many of the global and local tyre manufactures are expanding their
manufacturing facilities to cater to this growing demand.
 Cheaper import from China:
With low automotive demand in most countries, the lucrative Indian market was made a
dumping ground for cheap and low quality tyres, especially from China. With domestic
production costs high, it is difficult for Indian tyres manufactures to compete with such tyres.
 Imbalance in tax structure
The import of raw material at 20% duty, and the 8-10% duty on tyre imports is an
imbalance that is bound to affect the Indian tyres manufacturing in terms of efficient and
competition.
 Entrance of new players:
New companies especially from foreign countries are now entering the Indian market. They
have advanced technologies when compared to Indian tyres companies.
 Increasing transportation costs:
There has been an increase in the transportation cost due to increase in the fuel cost
 Changing technology

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MRF TYRES

When a particular technology is out , it should be immediately replaced with new

technology. It incurs a lot to the company.

CHAPTER 4

ANALYSIS OF AN IMAGINARY COMPANY USING ZOHO ANALYTICS

Zoho books is cloud-based smart accounting software which takes care of all your
accounting needs.
Zoho books is one-stop platform for managing your accounting tasks and organizing
the transactions. It’s a single secure location to keep up with your company bill’s and
invoices, reconcile your bank statement, control youe spending, overse projects, and
eliminate sales tax compliance worries.

It allow users to record, audit and analyze financial transaction and can be used for:
 Accounting: keeping track of bills and invoices, reconciling bank statements and
controlling spending.
 Project management: overseeing projects.
 Inventory management: managing inventory
 Financial reporting: providing financial reporting

Zoho books also offer entry level software that can grow with a business and is intuitive and
easy to use. The platform has a straightforward dashboard and versatile client portal

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MRF TYRES

Zoho books provides a comprehensive set of accounting tools, including: invoicing, expense
tracking, bank reconciliation, inventory management, and project tracking.

KEY FEATURES OF ZOHO BOOKS

Zoho books provides various features such as customizable invoices, expenses tracking, bank
reconciliation, financial reporting, and inventory management. It also offers integration with
other Zoho applications and third party tools.
AVAILABILITY AND PRICING
Zoho books is available in multiple languages and offers flexible pricing plans to suit
different business needs. It provides a free plan for basics accounting needs, as well as paid
plans with additional features and support.

S N PVT LTD
From 01/03/2024 To 30/03/2024
ACCOUNT TOTAL

Operating Income

Discount 8000

General Income 1000

Interest Income 4500

Late Fee Income 3000

Other Charges 0.00

Sales 3,50,780.00

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MRF TYRES

Shipping Charge 0.00

Total for Operating Income 3,50,780.00

Cost of Goods Sold

commission paid 10,450.00

Cost of Goods Sold 0.00

Job Costing 900.00

Labor 700.00

material purchase 21,700.00

Materials 0.00

prepaid expense 4,560.00

purchase account 53,000.00

purchases account 5,000.00

raw material purchase 7,590.00

Subcontractor 600.00

Total for Cost of Goods Sold 1,04,500.00

Gross Profit 2,46,280.00

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MRF TYRES

Operating Expense

Advertising And Marketing 1,230.00

Automobile Expense 0.00

Bad Debt 2,360.00

Bank Fees and Charges 0.00

Consultant Expense 0.00

Contract Assets 0.00

Credit Card Charges 0.00

Depreciation And Amortisation 1,000.00

Depreciation Expense 0.00

IT and Internet Expenses 0.00

Janitorial Expense 0.00

Lodging 0.00

Meals and Entertainment 0.00

Merchandise 0.00

Office Supplies 0.00

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MRF TYRES

Other Expenses 0.00

Postage 700.00

Printing and Stationery 6,000.00

Purchase Discounts 0.00

Raw Materials And Consumables 0.00

Rent Expense 1,000.00

Repairs and Maintenance 0.00

Salaries and Employee Wages 0.00

Telephone Expense 0.00

Transportation Expense 4,560.00

Travel Expense 2,500.00

Uncategorized 0.00

Total for Operating Expense 19,350.00

Operating Profit 2,26,930.00

Non Operating Income

Non Operating Income

Total for Non Operating Income 0.00

Non Operating Expense

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MRF TYRES

Exchange Gain or Loss 0.00

Total for Non Operating Expense 0.00

Net Profit/Loss 2,26,930.00

S N PVT LTD TOTAL

Cash Flow Statement
From 01/03/2024 TO30/03/2024
ACCOUNT

BEGINNING CASH BALANCE 0.00

CASH FLOW FROM OPERATING ACTIVITIES

ACCOUNTS PAYABLE 1,38,700.00

ACCOUNTS RECEIVABLE 38,940.00

EMPLOYEE ADVANCE 25,250.00

NET INCOME 2,26,930.00

PREPAID EXPENSES 8,000.00

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MRF TYRES

NET CASH PROVIDED BY OPERATING ACTIVITIES 2,93,440.00

CASH FLOW FROM INVESTING ACTIVITIES

ACCUMULATED DEP F AND F 1,000.00

FURNITURE AND EQUIPMENT 50,000.00

NET CASH PROVIDED BY INVESTING ACTIVITIES 49,000.00

CASH FLOW FROM FINANCING ACTIVITIES

NET CASH PROVIDED BY FINANCING ACTIVITIES 0.00

NET CHANGE IN CASH 2,44,440.00

ENDING CASH BALANCE 2,44,440.00

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MRF TYRES

S N PVT LTD
Balance Sheet
Basis: Accrual
Add Temporary Note
ACCOUNT 27/09/2022 27/09/2023

TOTAL TOTAL

Assets

Current Assets 54,000

Cash

Petty Cash 0.00 0.00

Undeposited Funds 0.00 0.00

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MRF TYRES

Total for Cash 0.00 0.00

BANK

savings account 0.00 2,86,840.00

state bank of India 0.00 42,400.00

Total for Bank 0.00 2,44,440.00

Accounts Receivable 0.00 38,940.00

Other current assets

Advance Tax 0.00 0.00

Employee Advance 0.00 25,250.00

Inventory Asset 0.00 50,000

Prepaid Expenses 0.00 8,000.00

TDS Receivable 0.00 0.00

Total for Other current assets 0.00 33,250.00

Total for Current Assets 0.00 3,16,630.00

Fixed Assets

accumulated dep f and f 0.00 -1,000.00

Furniture and Equipment 0.00 50,000.00

Total for Fixed Assets 0.00 49,000.00

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MRF TYRES

Total for Assets 0.00 3,65,630.00

LIABILITY

LIABILITIES AND EQUITIES

Current Liabilities

Accounts Payable 0.00 1,38,700.00

Employee Reimbursements 0.00 0.00

Opening Balance Adjustments 0.00 0.00

Tax Payable 0.00 0.00

TDS Payable 0.00 0.00

Unearned Revenue 0.00 0.00

Total for Current Liabilities 0.00 1,38,700.00

Long Term Liabilities

Construction Loans 0.00 0.00

Mortgages 0.00 0.00

Total for Long Term Liabilities 0.00 0.00

Other Liabilities

Dimension Adjustments 0.00 0.00

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MRF TYRES

expense payable 0.00 0.00

Total for Other Liabilities 0.00 0.00

Total for Liabilities 0.00 1,38,700.00

Equities

Capital Stock 0.00 0.00

Distributions 0.00 0.00

Dividends Paid 0.00 0.00

Drawings 0.00 0.00

Investments 0.00 0.00

Opening Balance Offset 0.00 0.00

Owner's Equity 0.00 0.00

Current Year Earnings 0.00 2,26,930.00

Retained Earnings 0.00 0.00

Total for Equities 0.00 2,26,930.00

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MRF TYRES

CHAPTER 5

CONCLUSION

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